Change Management in Marks and Spencer: A Critical Analysis
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This report evaluates the impact of changes on Marks and Spencer's organisational operations and strategies. It includes SWOT and PEST analysis, evaluation of key drivers, effects of changes on leadership, team behaviour and individuals, Lewin's change management model, and recommendations for minimising the effects of changes.
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 PART-1............................................................................................................................................3 Overview of organization............................................................................................................3 SWOT Analysis...........................................................................................................................4 PEST Analysis.............................................................................................................................4 Evaluation of key drivers.............................................................................................................5 Effects of changes on Leadership, team behaviour and individuals............................................6 Lewin's change management model............................................................................................7 Critical Evaluation of the long term implications of change.......................................................7 Recommendations for minimising the effects of changes...........................................................8 PART-2............................................................................................................................................8 Application of force field analysis..............................................................................................8 Use of force field analysis............................................................................................................9 Explaining the barriers of change and their influence on decision making and leadership.......10 Explaining accomplishment of change and its successfulness..................................................11 Advantages and disadvantages of leadership approaches to dealing with change....................11 Evaluation of different leadership approaches and models of change management.................12 CONCLUSION..............................................................................................................................13 REFERENCES................................................................................................................................1
INTRODUCTION Change management refers to the systematic approach that helps in dealing with the transformation and transition of the business objectives, processes, goals and technologies(Galli, 2018). With the dynamic environment it has become crucial for every organisation to inculcate change for success of the business operation. Its purpose is to implement effective strategies for helping employees to adapt to changes and effective control of the impact of the changes. It helps companies in making smart choices and helps them in enhancing their productivity while decreasingtherisk.Thus,helpsthecompanyinincreasingitsprofitabilitywhichwill automatically lead the company towards growth and success. Marks and Spencer is a British multinational retail company. It was founded in 1884 by Michael Marks and Thomas Spencer. Its headquarter is located in London. It specializes in selling home products, clothes and food products. It has around 75000 employees working under the brand. It has over 1400 stores that are located around 40 different countries. This report shows the ways in which changes impact the organisational operations and strategies. It also evaluates the different drivers of changes. Also, it evaluates the barrier that influence the decision making and leadership in an organisation. MAIN BODY PART-1 Overview of organization Marks and Spencer have a journey from the cave to the modern civilized society. That is from a single retail store into a giant multinational retailer has established deep roots around the globe over 129 years with approximately 400 stores internationally. Marks and Spencer has a clear targeted strategy for its growth in the international market. It is continuing in building new stores in key locations in the priority markets with ownership models like franchising and ownership(Jayatilleke and Lai, 2018). The operation management strategy of marks and spencer ensures that all the products offered to the customers are high quality and also the store are located at convenient place. However, it corporate strategy aims at becoming the world's number one sustainable retailer. It changes is process regularly so that it can fulfil the needs and requirements of its customers on time. It has also revamped its store layouts and visual
merchandising. Also, it has been changing its technology processes so that it can become more technologically advanced that will provide them with a competitive advantage in the dynamic environment. SWOT Analysis SWOT Analysis of M&S evaluates the organisation by its strengths, opportunities, weaknesses, and threats. It is a framework that helps the company in benchmarking its performances and business with comparing to its competitors. STRENGHTS: Here are the strengths of M&S in the analysis: It is one of the most experienced and powerful retail company with high recognition among the target audiences(AlManei and Tsinopoulos, 2018). The products of the company are perceived as the value for money due to the wide range of products being offered. It operates in 40 countries with around 1000+ retail stores. WEAKNESSES: Limiting the market share of the company due to the high competition prevailing in the market. Because of its popularity. The brand needs to protect itself from fake imitation goods available. OPPORTUNITIES Introduction of new market segment which can generate new profit margins. Development of their own website for higher sales revenue. THREATS Tough competition affecting the pricing strategies of the company. Thus, affecting the profits of the company(Matthews and et.al., 2018). It is a global company which is being exposed to different political regulation in which it is operating. PEST Analysis PEST analysis helps the company in analysing the market dynamics and enhancing its business accordingly. It analysis the brand on its tactics by examining the different factors which include:
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POLITICAL FACTORS: With the effect of Brexit it has affected the company's business operation. That is with the restriction on free movement of goods and services it has hindered the movement of companies products across the EU markets. It has resulted in declining the sales of the company thus. Leading to lower profit margins. ECONOMIC FACTORS: It includes the interest rates, inflation rates etc. of the economy. With the rise in the inflation in the UK economy it has led to lowering the sales of the company due to the low disposable income available to the citizens of the country(Thakur and Mangla, 2019). However, the financial crisis have also, resulted in decreasing the demand for high quality products in the economy. SOCIAL FACTORS: It includes the factors like age, demographics, social class of the customers. Marks and spencer keeping in mind the demographic offers it product to the consumer who like to spice up their wardrobe with high quality products at affordable prices. TECHNOLOGICAL FACTORS: With the advancement in the technology it is very important for the company to be technologically advanced so that it can cope up with the market trends and provides its customers with high quality products at reasonable prices(Al-Raggad and Alsawalhah, 2017). Evaluation of key drivers There are various forces that drivers an organisation for change. Every organisation has different forces that affects the changes being taken place in the organisation(Hayes, 2018). For growth and success of the company it is very important that the organisation change according to the dynamic environment. The different types of driving forces are: Internal forces are the one that drivers the company to change the internal process of the company. These are one of the most crucial and challenging forces that drives the company. It includes the change in the humanresourcesmanagement, operating process so that company can enhance its revenue and profits that will lead the company towards growth. M&S as a fashion brand needs to change its operating process time to time so that it can fulfil the requirement s of the dynamic customers. With the change in its internals forces it has helped the company in enhancing and boosting its performance efficiency and productivity.
On the other hand, external forces can be challenging it includes the factors like technology, government regulations, competitiveness of markets. It is very important that Marks and Spencer, uses advanced technologies that will not only help the company in lowering its production costs but also help the company in increasing its profit margins with maintaining its quality of products(Akbar and et.al., 2019). Also, M&S is a global company, therefore it has to face several regulations of the countries in which it operates and has to abide by the regulation so that the brand image is not hindered. One of the major force that leads the company towards change is the competition prevailing the market that is the company needs to innovate its products and services on timely basis so that they can get a competitive advantage and can enhance their market share. Effects of changes on Leadership, team behaviour and individuals. In the era of dynamic environment, there are significant factor that can forcibly change the processes of the business operations of an organisation. These factors not only affect the process management of the company but they also have an influence over various other elements like:Influence on Leadership-Leadership has been defined as the process that influences group of people in achieving the goals of the organisation. It is very evident that with changes in the organisation(Cameron and Green, 2019). The leadership style in the organisation will be affected. That is in these situation it is preferred that the company uses the transformational leadership style which will help in inspiring and motivating the employeesoftheorganisationinimplementationandinnovatingchangesinthe organisation with achieving the organisational goal with higher productivity.Influence on Individuals-The change management in Marks and Spencer has also shown effects on the employees of the organisation. That is if the company wants the changes to be effective it is very important that the company provides its employees with appropriate training and development(fenthaler, 2020). And also, provide them with guidance and motivation so that they can implement the change effectively and enhance their as well as company productivity. Influence on team behaviour-Positive behaviour is very important for inculcation of change management in organisation(Brones and de Senzi Zancul, 2017). That is with the changes been implemented in the M&S there are chances that it may lead to decreasing
the motivation among the team member and some employees may resist the changes which can affect the team behaviour, so it is very important that proper leadership is provided that help to built cooperation and coordination among the employees of the organisation. Lewin's change management model. Accordingtothemodelofchangemanagement,changeforanorganisationis complicated journey that involves various stages of transitions before attainment of stability stage. It is a three stage model which are as follows: 1.Unfreezing-The first and the most crucial stage of the whole process. It involves the willingness of organisation foster the changes to come out of its comfort zone(Shulga, 2021). It involves making the employees of the organisation aware about the changes being implemented and motivating them in accepting the new changes being inculcated for improving their and the organisational efficiency so that M&S can lead towards growth and success. 2.Change-This is the second stage which involve the actual transition that is where the actual change take place. It includes the acceptance of the new ways and changes that are being inculcated in the organisation. It is very important that Marks and Spencer provides its employees with appropriate training so that the changes implemented can be effective and can benefit the organisation in a positive way. 3.Refreezing-The thirdand thefinalstage of thismodelisthat stagewhere the organization achieves equilibrium that is a stage of stability(Domingues and et.al., 2017). It is the ultimate stage where the changes are being accepted and internalized that helps in reinforcing and strengthening the changes in the way of working of the employees of the company. With the proper guidance and leadership it will help Marks and Spencer in achieving this stage of equilibrium which results in growth of the company by enhancing their productivity and thus, resulting in increasing their market share. Critical Evaluation of the long term implications of change It can be critically evaluated that there can be both positive as well as negative implication of the changes that effect the company in a long term basis that is with the inculcation of changes in the organisation(Mobtahej,2020). it helps Marks and Spencer in increasing their visibility and productivity that is with advancement in technology it results in
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improving the production process. Thus, it affects the company's profit margin with reduction in production cost. However, it can be critically evaluated thatchanges can also have a negative impact on the organisation(Attah and Isaac, 2017). That is if the changes are not implemented properly in the company it will hamper the growth of the company. That is M&S will lead low profit margins and also hinder its market positioning. With the failure of successful implementation of change it will also result in decreasing the productivity while declining motivation among the employees of the organisation. Recommendations for minimising the effects of changes Changes are very crucial for every organisation that is for successful and smooth running of a business it is very important that the company is fostering changes according to the dynamic environmentalneeds.Also,thesechangeshelpsthecompanyinprovidingthemwitha competitive advantages that helps them in strengthening their market positioning. However, it is recommended to M&S that to minimise the negative impact of the changes it very important that proper training and development is provided to its employees so that the changes can be implemented effectively that enhances their productivity. Also, it is recommended that the company does proper planing and analyses the market appropriately and identifies the potential risk of those changes so that they can formulates plans that help in minimising the risk and negative impacts of the changes being implemented in the organisation. PART-2 Application of force field analysis Force Field Analysis refers to the analysis of the origin or the root cause that can be used as a tool for the organization so that it can take relevant actions according to the cause. This type of analysis is totally based on assumptions about the result of the situation and its current stage (Ptak-Kaczor and et.al., 2019). The force field analysis can include or does the following things- It is helpful in presenting the positive as well as negative situations so that they can be compared easily. It consider all the aspects in order to make the changes according to the situation. It reflects the origin of the problem along with its solution. It encourages the arrangement of the factors that should be consider on the priority basis.
Mark and Spencer use force field analysis for change management or in order to understand the change processes. It shows the imbalance between the driving forces and the restraining forces. Driving forces such as changing market trends, introduction of new technology and new personnelandontheotherhandrestrainingforcesarefailurefearoftheindividual, organizational idleness, etc (Zhao and et.al., 2021). It includes the following steps- Assess the current situation- It is necessary for the M&S to assess the current situation of the firm that what are the challenges or problems that should be faced by them and also the reaction of the employees regarding the change strategy. Define the objective- After analysing the current situation it is necessary to identify or recognise the outcomes of the change. M&S have to define the goals on the basis of the expected results of the change initiative. Recognise driving forces- Driving forces refers to the favourable factors of the firm such as changing industry trends, increasing competition, advancing technology, etc. These factors support the M&S so that it can achieve the desired goals (Song and et.al., 2020). Identify restraining forces- These factors create hurdles in the path of achieving the defined objectives of M&S and it includes the fear and the negative attitude of the employees (Das and et.al., 2019). It restrict the driving forces of M&Sand create many problems for them. Evaluation- After identifying both the forces it is necessary for the M&S to critically evaluate these forces by giving them scores through the numerical scale. M&S must focus on the effects of these forces so that it can be able to decide whether the change is applicable or not. Action plan- M&S must create a quick action plan in order to build up the driving forces and to reduce the restraining forces. Use of force field analysis By using the force field analysis the following recommendation should be made by M&S so that they can be able to meet the goals and objectives of the organization- M&S must define its goals properly so that the employees can able to understand the need of the change and there should be clear and effective communication among the members of the firm regarding the change initiative (Zheng and et.al., 2019). It must analysis the strengths, weaknesses, opportunities and the threats in order to define the objectives of the required change.
M&S must examine the current market situation, new competitors enters in the market, changing trends and the changing demand as well as the preferences of the customers. This analysis help M&S to strengthening the driving forces and weakening the restraining forces. It must make new plans and strategies to achieve growth and success. As the strengths of M&S is its brand value and a strong customer base so it must put efforts to use the driving forces in order to enhance the productivity and on the other hand the weaknesses of the M&S is the adjust-ability of the supply chain of online orders. So, it should try to overcome these problems by reducing the restraining forces. Explaining the barriers of change and their influence on decision making and leadership There are several barriers of change management that create a gap and give negative effects on the production of M&S and also influenced the decision making process and leadership (Taylor, 2019). They are as follows- Lack of effective communication- Communication plays an important role at the time of change as it removes the confusion between the members of M&S. So, it is necessary for M&S to make communication effective and clear and should make strategies to make communication better. Lack of communication also effect the decision making process as if the communication is not proper it can leads to make wrong decisions regarding the change (Ikram, Sroufe and Zhang, 2020). Also, it affect the leadership as it is the responsibility of the managers or leaders to communicate well with the team members. Employee involvement- One of the major barrier of M&S at the time of change is the lack of employees involvement. The workers of the M&S does not involve themselves when there is a change in technology as many of them are not familiar with this new and advanced technology. It creates many problems for M&S such as it affects the decision regarding adaption of new technology and also creates challenges for the leaders to make employees understandable about the change. So, M&S must tries to involve the workers by listening to their opinions and by reducing their fear of change. Unknown current state- This is the biggest barrier of M&S so, in order to introduced the change it is essential for M&S to assess the current stage of the company so that it will helptheM&Stoachievetheirdesiredgoals(HorváthandSzabó,2019).Ifthe organization doesn't know its current situation it also affect the decision to make new plans and their implementation.
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Explaining accomplishment of change and its successfulness M&S accomplish or achieve the change by making proper plans and strategies regarding the change management and by putting efforts to enhance or increase its strengths and by reducing its weaknesses (Gustafsson and et.al., 2021). M&S implement the change by prior defining the goals before introducing the change in the firm. It gives proper training to the employees to make them understood about the change technologies and also motivates them to have a proper, clear and effective communication to reduce the confusion. M&S introduced the change of adapting the new and advanced technology and successfully transfer the data and the information of the firm on clouds. Also, use the social media platform for the promotion and the advertisement of the products (Cardell and et.al., 2021). This technology change is successful for M&S as they are able to reach and attract more and more customers online that will help the organization to increase the profitability and productivity of M&S and also leads the company towards success. Advantages and disadvantages of leadership approaches to dealing with change There are several different leadership approaches and their advantages and disadvantages are as follows- Autocratic approach-This type of approach or style is also known as authoritative or directive style (Roibu, Nica and Hornoiu, 2019). In this all the powers of making decision regarding the change in M&S is in the hands of leaders or top authority and only the leaders are responsible for every task. Advantages-The main advantages of this approach is the fast decision making , suitability and strong motivation to the managers. Disadvantages- Employees get exploited by leaders and do not participate in decision making, employees work as slaves, lack of creativity and freedom of speech, frustration, etc. Example- At the time of change in M&S only leaders take the decision and explains the work of employees regarding it. Democratic approach- This style involves the active participation of the workers as well as the managers and also allows the free flow of communication among them (Yilmaz, Yilmaz and Keser, 2020). According to this approach M&S distributed the powers between the leaders and the team members.
Advantages- Employees are free to express their views, ideas and suggestions, Increases the creative thinking, Reduce the resistance to change, etc. Disadvantages-Delayintakingdecisions,confusionamongthemembersthatwhois responsible for the wrong decisions regarding the change, maintaining the secrecy of the information is difficult. Example-WhenM&Sintroducedtechnologychangetheleadersassignthedutiesor responsibilities to the employees and also make different groups in order to perform the task. Evaluation of different leadership approaches and models of change management Evaluation of Lewin's change management model This model involves three steps that are unfreezing, changing and refreezing. Unfreezing- It is the initial step of change process in order to aware the people that what is the current level of acceptance of the change that will creates a hurdle for the M&S (Bans-Akutey, 2020). It includes the proper analysis of the processes, ways of thinking, public and the structure of the organization so that they can be able to show the workers that the change is important for the company. Also, it shows that the change is necessary in order to achieve the competitive advantage in the market. Communication is important at this stage as it facilitates the employees to be informed about the change and its benefits. Changing- In this the M&S have to transfer to the new state of being. Or, in simple words changing is the process where the change can be implemented (Thomas and et.al., 2019). It is the step where the M&S faces many problems and there is a fear of uncertain situation and it is hard to overcome. At this stage employees learn many new things such as new behaviours, thinking, etc. So, the M&S must put efforts in order to make the workers familiar with these changes. Refreezing- It is the final step in the change process and it includes reinforcing and solidifying the new state of change. This step is important to ensure that the employees should not go back their old thinkings so the M&S have to reinforce the works by giving them rewards on the basis of individual performance as well as the group. Positive effects-This model can easily understood and implemented by M&S in order to get positive results of the change initiative (Mukhtar and et.al., 2020). As compared to other models or methods this model involves less steps and can be implemented in a short period of time. This model is good for M&S as it uses clear concepts and illustrations.
Negative effects- One of the major disadvantage or the negative effect of this model is on the employees of M&S as they get worried about the change introduced by the firm. It creates the felling of insecurity among the members of M&S. The other drawback of this model is its simplicity in this new era of digitalization. Evaluation of leadership approaches There are many different types of leadership approaches or styles such as positive and negativeleadership,autocratic,democratic,free-reinstyle,employeeoriented,production oriented, transformational approach, etc. Positive effects- These approaches are helpful in understanding the wants and needs of the employees as well as they can be able to transfer from one style to another. It boost the confidence of the employees and improve their critical and analytical thinking of solving the problems. Negative effects-The employees who follows autocratic leadership style became stubborn and works as a slave, resentment of the workers, lack of creativity and the possibility of taking wrong decisions. CONCLUSION From the above report, it can be concluded that the change is important for the organization and how the change process can be implemented. How an organization can do analysis in order to identify the key drivers of change. However, it can also be concluded that there are some positive as well as negative impact of change and it also affect the leadership of the individual or the team. Company put efforts to minimise the impact of change through effective planning and management. Also, the application of the force field analysis to determine the opposition and support for the change and use of this analysis to achieve the organizational goals and objectives. The different types of barriers to change and their influence on decision making and leadership. The advantages and disadvantage of different leadership approaches and the models of change management along with their critical evaluation help the organization to examine the current market situations.
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